Consumers may not have the choice of switching to a cheaper water supplier, but there are plenty of things they can do to reduce their bills.

Smaller households or single people will find they can cut their outlay by having a water meter installed. Currently, only about a third of homes in England and Wales are metered.

If you are on a meter, you only pay for what you use, which means that cutting down your useage will save you money. The general rule is, if there are fewer people in your house than bedrooms (for example, two people living in a four-bed room family home), then you could save money – typically around £54 a year – by switching to a water meter, uSwitch.com says. It adds that if you switch to a meter and find that you are not saving money or are unhappy with the change, you can switch back to unmeasured charging within 12 months.

Customers can check if they are likely to save with a meter by using the calculator on the Consumer Council for Water (CCWater) website.

Meanwhile, if you live in a property where a meter cannot be installed, such as in a block of flats, you may be able to substantially reduce your bill by applying for what is called the "assessed household charge". This is available to those who have asked to be charged by meter, but the company is unable to fit one (it could also be that your pipework isn't suitable, for example). Go to your water company's website or give them a call.

For a Thames Water customer in a two-bed property, the 2013-14 bill would be £285. For those living on their own it drops to £218.

Each household usually has to apply individually before they can be considered for the assessed charge, even if their neighbours have been told by the water company that a meter couldn't be fitted to their supply pipe.

Here are some other ways you might be able to save money:

•Shorten your shower – or start having them at work if that is an option. "For every minute less you spend under your shower, you could save between £5 and £10 over the year. Or install a water-saving shower head, which can cut the amount used by about 30%," CCWater says.

•Replace worn washers on leaky taps. "A dripping hot water tap wastes energy and, over a year, could unnecessarily add more than £18 to your annual bill," it adds.

•No ifs – get a water butt. Tens of thousands of litres of rainwater fall on your roof every year – enough to fill hundreds of water butts, according to Waterwise, which describes itself as the UK's leading authority on water efficiency. Using one or more butts to capture rainwater can help reduce your bill if you are on a meter. And while this may not save you money right now, it may well do so in the future. Britain and Ireland are the only countries in Europe that haven't introduced compulsory metering.

•Take advantage of free water-saving products offered by companies. For example, Anglian Water offers a free kit called Bits and Bobs, which includes devices that can be fitted to showers, toilets and taps, provided your home is in the qualifying area.

•If your drainpipes taking rainwater off the roof aren't connected to the sewerage system, you can apply for a rebate of between £17 and £50 a year. The water companies – or to be precise, the sewerage companies – apply a charge to treat that water, and if it's not applicable then you don't need to be paying for it. You have to fill in a form, and it may require a visit to your home. If you can show that the rainwater goes into soakaways, you can apply for the rebate.

If you are struggling to pay your water bill, contact your company immediately. They can usually offer more flexible payment options, such as weekly or monthly plans. In some cases they may also be able to help through special assistance funds or schemes to help eligible customers reduce their water bills, CCWater says.